Grafton Resources Inc. (CSE:GFT; OTCQB: GFTFF) (FSE: K8L0), a Canadian exploration company, announced on May 20, 2026, that it has entered into a non-binding letter of intent (LOI) with Newmont USA Limited to acquire two gold-focused exploration projects in Chile. The proposed acquisition, if completed, would enhance Grafton’s exploration portfolio in the country and complement its existing regional land position.
Management believes the projects exhibit attractive geological characteristics and offer potential operational and exploration synergies with nearby properties already held by the company. Grafton considers the broader district highly prospective and views the consolidation of strategically located concessions as a way to improve future exploration planning and regional-scale targeting opportunities. The company anticipates that the acquisition will further its strategy of building a district-scale position in prospective mineral belts within Chile.
The parties intend to negotiate and execute a definitive agreement, subject to satisfactory tax, corporate, and securities law advice. Completion of the acquisition remains contingent on several conditions, including due diligence, final documentation, and regulatory approvals, notably from the Canadian Securities Exchange (CSE). The LOI does not create a binding obligation to complete the transaction, except for certain customary binding provisions.
Campbell Smyth, Chief Executive Officer of Grafton, commented: “We are very pleased to have reached this stage. The Proposed Acquisition aligns with Grafton’s strategy of building a strong district-scale position in prospective mineral belts within Chile. We believe the Projects may offer compelling geological and operational synergies with our existing land holdings, and we look forward to advancing discussions toward a Definitive Agreement.”
For leaders in the mining and exploration sector, this announcement underscores the ongoing consolidation trend in Chile’s gold-rich regions. If completed, the acquisition could position Grafton to better leverage economies of scale, reduce exploration costs, and accelerate discovery timelines. The move also highlights the importance of strategic partnerships between junior explorers and major mining firms like Newmont. Investors should note that the transaction remains subject to due diligence and regulatory clearance, and the LOI is non-binding, meaning the deal could fall through if conditions are not met.
Further details will be disclosed as material developments occur, in accordance with securities laws and CSE policies. Newmont is an arm’s length party to Grafton. The CSE has not passed upon the merits of the matters referenced and has neither approved nor disapproved the contents of this release.
Grafton Resources is a Canadian exploration company focused on the discovery and development of mineral assets in the Americas. The company is committed to responsible exploration, strong community partnerships, and generating shareholder value.
This news release contains forward-looking statements, which involve risks and uncertainties. Actual results could differ materially from those projected. For more information on risks, readers should review the company’s filings at SEDAR+.
